Audit finds North Carolina lottery sales up, school money down

A new audit into the North Carolina Education Lottery reveals lotto ticket sales surged last year but for some reason, payments to North Carolina public schools declined.

“When you look at those numbers in black and white, $1.2 billion in additional revenue and $20 million less year-over-year contributing to the public education, it begs the serious question,” State Auditor Dave Boliek said.

Boliek said this after his office announced they’re conducting a performance audit of the North Carolina Education Lottery, the first in more than 15 years.

“It’s past time for a performance audit to be completed by the North Carolina State Auditor’s Office. So, that’s what we’re doing,” Boliek said.

According to the office of the State Auditor, in 2024, the lottery reported total annual revenue of $5.4 billion with $1.07 billion transferred to North Carolina’s Education Lottery Fund.

In 2025, revenue rose to $6.6 billion, but the amount for public schools fell by $20 million. Meantime, Boliek’s office says the percentage contributed to public schools has fallen from 23% in 2023, 20% in 2024, and down to 16% in 2025.

“The public deserves specific answers as to exactly why the lottery has been able to generate that much more money, yet they have contributed year over year less to public education,” Boliek said.

In a letter, lottery officials blamed the decline in the share of revenue transferred on players buying fewer high-margin jackpot tickets and playing more lower-margin digital games, decreasing their profits.

“Now that in and of itself doesn’t mean that there’s any malfeasance, doesn’t mean that folks at the state lottery aren’t doing all that they can,” Boliek said. “But what it does say is there are some tough questions that need to be asked and answered.”

The auditor says lottery officials have been fully cooperating, and at this point, his office has found no evidence of wrongdoing.